Those are some economics that investors can handle when they consider the Linde downstream partnership deal, the soaring price of helium, and the additional upside potential here. For every ten producing wells, the company intends to drill only a single salt-water disposal well. Total Helium’s answer to Hugoton’s water problem is a de-watering tech that works best on huge zones. The right technology is always a matter of keeping costs down. Putting the right technology in the right place and right before a supply squeeze–that’s Steinke’s modus operandi. That may end up being the last big onshore oil discovery in the world, and now, with Total Helium, Steinke is once again backing a tiny company that’s aiming big.
It was small-cap Recon Africa, after all, that went on a super-sized expedition to Namibia and came back with the discovery of a working petroleum system in the giant Kavango Basin. This wildcatter has a reputation for going where no one else is paying attention and drumming up big discoveries and even bigger opportunities. Total Helium, backed by Craig Steinke of Reconnaissance Energy Africa (Recon Africa), was up for the challenge. That water has to go somewhere–and it has to do so economically. Even though conventional, its huge remaining resources were too expensive to extract due to the high water content. Total Helium brought new technology into Hugoton while everyone else appeared to be distracted by the non-conventional opportunities in other words, the shale boom.Īfter getting at the easy natural gas in Hugoton historically, not to mention some 300 BCF of helium, the shale boom drew attention away from this massive field. #2 The Wildcatters Surprising Everyone from Africa to North America
This land has proven helium concentrations …Īnd Total Helium is targeting 70 billion cubic feet of helium here, along with 8.5 trillion cubic feet of produced gas.
Half of that acreage is in the form of farmout agreements with Scout Energy, one of the largest producers in the basin. So far, Total Helium ( TSX.V:TOH OTC: TTLHF) has amassed approximately 115,000 acres of leases on hand at Hugoton, the largest gas field in the United States. #1 Hugoton: Why This Massive Gas Field Is Back on Everyone’s Radar Here are 5 reasons to keep a close eye on Total Helium right now: Now, it’s not only started producing, but it’s also ready to sell, and it’s expanding its helium holdings, fast, with an eye to grabbing as much market share as it can against the backdrop of a major helium shortage that has seen prices upwards of $500 Mcf–again, more than 100x the price of natural gas.įirst to market may be the biggest beneficiary of a helium boom. gas field before others saw the potential supply squeeze looming. Total Helium’s wildcatter team jumped on the helium prospects in the largest U.S. In our view, the advantage here goes to Total Helium ( TSX.V:TOH OTC: TTLHF ) the owner of a large helium play in the Kansas-Oklahoma panhandle that has already started producing and enjoys a lucrative offtake agreement with one of the biggest members of the helium oligopoly”–the $160-billion behemoth, Linde Plc ( NYSE:LIN). Supply is now at a critical level, and the Russian war on Ukraine is compounding the supply crunch, stripping us of more global helium resources as the natural gas it is extracted with is hurriedly shipped off to Europe to stave off a crisis without stripping and liquifying the helium.įor North America, which until recently enjoyed a stable supply of helium through the Federal Helium Reserve in Amarillo, Texas, there is an opportunity for anyone who can bring helium back home. Non-renewable and irreplaceable, helium is a critical element in hard drives, supercomputing, scientific research, space travel, and even medical MRIs. The bulk of the world’s helium reserves are found in natural gas fields, which means that these fields now have double the potential–and double the interest from a national security perspective. Worth 100x more than natural gas, the shale boom has taken on a new angle for exploration and production, with the critical level of helium supplies igniting a land rush that could determine the future of innovation itself.
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